Exploring Three SGX Stocks With Estimated Intrinsic Discounts Ranging From 40.5% to 41.9%

In This Article:

Amidst fluctuating performances akin to global tech giants, the Singapore market presents unique opportunities for investors seeking value. In the current environment, identifying stocks trading below their intrinsic value could offer potential advantages.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name

Current Price

Fair Value (Est)

Discount (Est)

LHN (SGX:41O)

SGD0.335

SGD0.37

10%

Singapore Technologies Engineering (SGX:S63)

SGD4.37

SGD7.40

40.9%

Winking Studios (Catalist:WKS)

SGD0.29

SGD0.51

42.8%

Hongkong Land Holdings (SGX:H78)

US$3.38

US$5.81

41.9%

Frasers Logistics & Commercial Trust (SGX:BUOU)

SGD0.995

SGD1.67

40.5%

Seatrium (SGX:5E2)

SGD1.47

SGD2.63

44%

Digital Core REIT (SGX:DCRU)

US$0.625

US$1.11

43.9%

Nanofilm Technologies International (SGX:MZH)

SGD0.95

SGD1.48

35.7%

Click here to see the full list of 8 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Frasers Logistics & Commercial Trust

Overview: Frasers Logistics & Commercial Trust (SGX:BUOU) is a Singapore-listed real estate investment trust specializing in industrial and commercial properties, with a portfolio valued at approximately S$6.4 billion across Australia, Germany, Singapore, the United Kingdom, and the Netherlands, and a market capitalization of about S$3.74 billion.

Operations: The trust generates revenue from a portfolio of 107 industrial and commercial properties located in Australia, Germany, Singapore, the United Kingdom, and the Netherlands.

Estimated Discount To Fair Value: 40.5%

Frasers Logistics & Commercial Trust is trading at a significant discount, valued 40.5% below its estimated fair value, indicating potential undervaluation based on cash flows. Despite this, the trust faces challenges with debt not well covered by operating cash flow and an unstable dividend track record. Analysts expect a revenue growth of 6.1% per year and forecast the company to become profitable within three years, outpacing the average market growth rate. Recent financial results show a decrease in net income from SGD 118.07 million to SGD 93.59 million year-over-year, reflecting some earnings pressure despite higher sales figures.

SGX:BUOU Discounted Cash Flow as at Jul 2024

Hongkong Land Holdings

Overview: Hongkong Land Holdings Limited operates in the investment, development, and management of properties across Hong Kong, Macau, Mainland China, Southeast Asia, and other international locations with a market capitalization of approximately $7.46 billion.